OCI Holdings, a chemical and solar power company, has clinched a significant $1 billion supply contract with Massachusetts-based CubicPV, a U.S. solar panel manufacturer. The agreement, facilitated through OCI's Malaysian subsidiary OCIM, spans from 2025 through 2033 and involves the supply of polysilicon for solar panels.
The long-term contract solidifies OCI Holdings' position as one of the few non-Chinese suppliers of solar-grade polysilicon, a strategic advantage amid U.S. initiatives like the Inflation Reduction Act and the Uyghur Forced Labor Prevention Act (UFLPA) aimed at reducing dependence on Chinese technology. CubicPV plans to commence solar wafer production at its upcoming Texas plant in 2025, utilizing OCIM's polysilicon.
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With increasing scrutiny in European countries aligning with UFLPA-like measures, OCI anticipates favorable market conditions that will further boost its global sales. The chemical and solar power company acquired its solar-grade polysilicon production plant in Sarawak, Malaysia, from Japan's Tokuyama in 2017. The plant's annual production capacity of 35,000 tons is expected to expand to 65,000 tons by 2027.
OCIM's polysilicon, produced in the Sarawak plant powered by hydroelectricity, aligns with the Renewable Electricity 100 (RE100) criteria, reinforcing its sustainability credentials.
CubicPV CEO Frank Van Mierlo expressed satisfaction with the supply contract, emphasizing the quality and compliance of OCIM's products with U.S. import regulations. OCI Holdings Chairman Lee Woo-hyun highlighted the contract as confirmation of the global market's demand for OCIM's high-quality solar PV polysilicon.
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In a strategic move, OCI Holdings recently announced a joint venture with Tokuyama to establish an 11,000-ton manufacturing plant for electronic-grade polysilicon, used in semiconductor production, in Malaysia by 2026. This diversification aligns with OCI's broader commitment to meeting evolving market demands.
